Softbank says to set up venture with Vodafone

TOKYO, May 18 (Reuters) Softbank Corp., a new entrant into Japan's mobile phone market, said on Thursday it and Vodafone Group Plc have agreed to set up a joint venture to develop and procure handsets and content.

The news helped boost shares of Softbank, which reversed morning falls to trade up 1.56 percent at 2,930 yen in early afternoon trade, bucking a broader market decline.

Softbank last month acquired the Japan unit of Britain's Vodafone for about billion, making it the third-biggest player in Japan's billion mobile market after NTT DoCoMo and KDDI Corp.

Softbank said in a statment that the joint venture would be capitalised at a maximum of 11 billion yen (.37 million), with each company taking a 50 percent stake.

In addition, Vodafone K.K., the former Japan unit of Vodafone, will change its name to Softbank Mobile Corp. as of Oct. 1.

REUTERS CS RS1133